A recent study by the Economic Policy Institute highlights that Blacks and Latinos lagged far behind whites even during the last economic boom. To worsen the scenario, unemployment rates for both groups have far outpaced those of whites during the recent economic recession. Unemployment for African Americans reached a 25-year high — exceeding 20 percent in at least five states.
A closer look reveals that the unemployment rate for blacks, Hispanics and men have been disproportionately hit the hardest because of their high employment concentrations in sectors that have been decimated: manufacturing and construction. The downsizing of the auto industry had the unemployment rate for blacks in Michigan exceeding 25 percent at its highest. Alabama, Illinois, Ohio, and South Carolina’s jobless rates for blacks rose above 20 percent. Nevada’s Latino unemployment rate rose to almost 23 percent.
Another study released in January by Boston-based think tank, United for a Fair Economy, stated that blacks and Latinos were three times as likely to be as poor as whites. A black or Latino family’s median 2007 income was $27,800 compared with a white household’s $170,400. The economic losses could result in a 2010 50 percent poverty rate for African American children, up from 24 percent in 2008, according to Kai Filion, research analyst at the Economic Policy Institute.
This implosion damage from the loss of the American Dream continues to take a toll on overly stressed family units. With rising foreclosures, families are reduced to sharing living quarters with relatives or friends. Transportation is often an issue as vehicles are repossessed and government mass transit systems slash budgets and cut services. Even entrepreneurship is caught in the net. For instance, African American salon closures are far outpacing new launches.
According to Dr. Joyce Irons of the Clarity Psychological Group (above), it is imperative that human resource professionals prepare for long-term fallout. Speaking to training and development professionals last fall, Dr. Irons urged the group to prepare for a slightly different employee in the near future. Current employees are being overworked and underpaid in the American commerce system’s attempt to reduce budgets using downsizing as a tool. Recruited employees could possibly begin the working relationship combating stressors such as divorce, residential loss, living without medical benefits — some or all possibly resulting from job loss.
“We have to begin to train human resource staffs and management on the recognition of stressors. It is more than a humanistic issue; it is a bottom line issue. A less than fully functioning employee can’t fully contribute to their team or team goals. Providing coping alternatives benefits every stakeholder,” stated Dr. Irons.
